Question: pleae 12 A A A Styles Find Q4 (25 marks) a) Consider the following information: 1. ii. Calculate the expected return for each stock. Calculate

pleae
12 A A A Styles Find Q4 (25 marks) a) Consider the following information: 1. ii. Calculate the expected return for each stock. Calculate the standard deviation for each stock. State Probability of Event Boom 0.30 Rate of Return Stock X Stock Y 0.17 0.27 0.09 0.12 0.04 -0.17 0.55 Normal Burst 0.15 5 b) Consider the following information: Header i. What is the expected return on an equally weighted portfolio of these three stocks? What is the variance of a portfolio invested 20% each in A and B and 60% in C? ii. State Probability of Event Rate of Return Stock X Stock Y Stock Z 0.65 0.07 0.15 0.33 Boom Recession 0.35 0.13 0.03 -0.06
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